Bill Text: HI HB1491 | 2022 | Regular Session | Amended
Bill Title: Relating To The Cigarette Tax And Tobacco Tax Law.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-15 - Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Okimoto voting aye with reservations; none voting no (0) and Representative(s) McKelvey excused (1). [HB1491 Detail]
Download: Hawaii-2022-HB1491-Amended.html
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1491 |
|
THIRTY-FIRST LEGISLATURE, 2022 |
H.D. 1 |
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
RELATING TO THE CIGARETTE TAX AND TOBACCO TAX LAW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 245-26, Hawaii Revised Statutes, is amended to read as follows:
"§245-26
Price; payment[; deferred payment purchases]. (a)
Stamps shall be sold at their denominated values, plus a stamp fee of
1.7 per cent of the denominated value of each stamp sold, composed of the
aggregate of:
(1) .2 per cent of the denominated value of the stamp to pay for the cost to the State of providing the stamps, with that amount to be deposited to the credit of the department of taxation's cigarette tax stamp administrative special fund; and
(2) 1.5 per cent of the denominated value of the stamp to pay for the cost of enforcing the stamp tax, with that amount to be deposited to the credit of the department of the attorney general's tobacco enforcement special fund;
provided that the department by rule may modify the stamp fee to reflect actual costs incurred by the State in providing the stamps.
(b) Payment for stamps shall be made at the time
of purchase[; provided that a licensee may defer payments pursuant to section
245-27.] in cash, by certified check, or by bank transfer."
SECTION 2. Section 245-27, Hawaii Revised Statutes, is repealed.
["[§245-27] Maximum amount of deferred-payment purchases;
bond. (a) A licensee may apply to the department to set
the maximum amount of deferred-payment purchases of stamps that may remain
unpaid by the licensee during the time specified under section 245-28. Upon receipt of the application and any bond
required pursuant to subsection (b), the department shall set the amount for deferred-payment
purchases.
(b) The department may require that a licensee
who submits an application for deferred-payment purchases of stamps post a bond
in an amount of up to one hundred per cent of the maximum amount of allowed
deferred-payment purchases as a condition of department approval of the
application."]
SECTION 3. Section 245-28, Hawaii Revised Statutes, is repealed.
["§245-28
Time for payment of deferred-payment purchases; manner of payment. Amounts owing for stamps purchased on the deferred-payment
basis in any calendar month shall be due and payable on or before the twentieth
day of the following calendar month. Payment
shall be made by a remittance payable to the department."]
SECTION 4. Section 245-29, Hawaii Revised Statutes, is repealed.
["[§245-29] Suspension or reduction of privilege to
purchase on deferred-payment basis.
The department may suspend, without prior notice, the privilege to
purchase stamps on the deferred-payment basis or may reduce the amount of
deferred-payment purchases allowed the licensee if:
(1) The licensee fails to promptly pay for
stamps when payment is due;
(2) The bond or bonds required of the licensee
are canceled or become void, impaired, or unenforceable for any reason; or
(3) In the opinion of the department,
collection of any amounts unpaid or due from the licensee under this chapter is
jeopardized."]
SECTION 5. Section 245-30, Hawaii Revised Statutes, is repealed.
["[§245-30] Penalty for failure to make timely payment. A licensee who fails to pay any amount owing
for the purchase of stamps within the time required shall pay a penalty of:
(1) Ten per cent of the amount due in addition
to the amount due; and
(2) Interest at the rate specified in section
231-39 from the date on which the amount became due and payable until the date
of payment."]
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on January 1, 2023.
Report Title:
Cigarette Tax and Tobacco Tax Law; DOTAX; Cigarette Tax Stamps; Deferred Payment Purchases
Description:
Repeals the deferred payment purchase option for cigarette tax stamps. Requires licensees to pay for cigarette tax stamps at the time of purchase using cash, certified check, or bank transfer. Effective 1/1/2023. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
